As one of the featured initiatives in smart grids, demand response is enabling active participation of electricity consumers in the supply/demand balancing process, thereby enhancing the power system’s operational flexibility in a cost-effective way. Industrial load plays an important role in demand response because of its intense power consumption, already existing advanced monitoring, and control infrastructure, and its strong economic incentive due to the high energy costs. As typical industrial loads, cement plants are able to quickly adjust their power consumption rate by switching on/off the crushers. However, in the cement plant as well as other industrial loads, switching on/off the loading units only achieves discrete power changes, which restricts the load from offering valuable ancillary services such as regulation and load following, as continuous power changes are required for these services. In this paper, we overcome this restriction of poor granularity by proposing methods that enable these loads to provide regulation or load following with the support of an onsite energy storage system.